Social partners to study education funding reform

A report to be discussed by the Malta Council for Economic and Social Development is proposing a reform in the financing of education to incentivise study "in areas of major economic need", implying that the government should financially back those academic courses which the country was most in need of.

The report recommends the introduction of a differentiated system of stipends for different courses, based on the country's economic needs. It also recommends that a portion of the stipend should be repayable by the student later in life, subject to a moratorium following the commencement of work.

Containing proposals aimed at enhancing competitiveness, the study was drawn up by the National Competitiveness Working Committee, which embraces the GWU, the UHM and the CMTU, employers' associations, the Federation of Industry and the government. As a result, when the document comes up for discussion at the MCESD, the bodies that made the proposals are not expected to come up with any opposition, sources said yesterday.

The section of the report dealing with education says that the three potential concerns for the education system are costs, output, with concerns about early school leavers and the production of graduates with potentially doubtful employability, and the stipends system, which may not be providing the right incentives to students.

The report proposes that one should consider the Dutch experience, where school is compulsory between the ages of five and 18 but where the last two years of school attendance is compulsory only on a part-time basis.

Compulsory education is free of charge but those over 18 have to pay for their education. The amount students pay depends on whether one is eligible for support or not. Students with support pay a government-determined tuition fee and those without support pay tuition fees set by the institution.

All students over 18 receive a basic state grant and the rest is supplemented by a loan, which depends on the student's income (or that of his parents) and his educational performance. Supplementary grants based on means testing may be given and this depends on the parents' income.

The report proposes a number of measures as far as education is concerned. These include:

Courses up to first degree level would be retained free of charge while specialised post-graduate courses would be offered at a fee.

In the longer term, if a better system of means testing is available, all post-secondary education courses would be subject to fees. Scholarships would be given according to merit and need.

Government financing of educational institutions would be made subject to redirect teaching resources to areas of "major economic need". The allocation of resources to different educational departments should be made subject to performance and the economic needs of the country.

It also proposes that there should be different stipends for courses, based on the country's economic needs and that a portion of the stipend should be repaid by the student later in life.